FAQs on 3rd Party Logistics Warehouses

WHAT IS A THIRD-PARTY LOGISTICS WAREHOUSE?

Third-party logistics warehouses help large and small retailers and manufacturers in the process of storage and distribution of their products.  Third-party logistics warehouses specialize in offering scaled and customized integrated warehousing and distribution services.

Inside Gratton Warehouse located in Omaha

WHAT ARE THE SPECIFIC SERVICES OFFERED BY A 3PL WAREHOUSE?

Services typically include warehousing services in locations that enable easier access to target markets,  integrated distribution networks for efficient and timely transportation services, home delivery services to a company’s customers, inventory management services, consolidation services, fulfillment, deconsolidation, reverse logistics services, cross-docking, aftermarket support, installation, as well as a comprehensive end to end supply chain solutions.

WHAT INDUSTRIES BENEFIT FROM 3PL SERVICES?

Most companies that have daily needs, or infrequent needs, for the delivery of their products can benefit from third party logistics.

WHAT IS THE DIFFERENCE BETWEEN A PUBLIC WAREHOUSE AND A 3PL COMPANY?

The term Third-Party Logistics describes a company that may offer a great array of logistics-related services. Public Warehousing is one of these along with value-added services such as packaging, fulfillment, transportation, IT services, and customized services.

WHAT ARE THE BENEFITS OF USING A 3PL WAREHOUSE?

The services of a competent 3PL provider allow companies to avoid costly investment in warehousing facilities, reduces costs and resource-use in management of inventory, and provides the opportunity for a business to improve on service delivery to its clients.  A 3PL warehouse can significantly contribute to the efficiency and success of a business.

ARE MY GOODS INSURED?

The typical 3PL carries several types of insurance, including worker’s compensation, general liability, cargo insurance, and Warehouse Legal Liability insurance.  WLL covers losses to your product due to the negligence of the 3PL. Many warehouses limit the number of damages that can be claimed.  This is usually stated as an amount per pallet or case (typically between 100 and 500).   Be sure you clarify with the warehouse the value of your product to ensure adequate coverage.  It would be a good idea to contact your insurance agent to determine if your goods are covered in an outside facility as well.